HSBC Asset Management (AM) has entered the active exchange-traded fund (ETF) market with the launch of five new funds.

Its HSBC PLUS Active ETF range look to provide investors with country and regional exposures through ‘core’ and ‘income’ versions.

The funds that comprise the active ETF range are: HSBC PLUS USA Equity Quant Active UCITS ETF, HSBC PLUS World Equity Quant Active UCITS ETF, HSBC PLUS Emerging Markets Equity Quant Active UCITS ETF, HSBC PLUS World Equity Income Quant Active UCITS ETF, and HSBC PLUS Emerging Markets Equity Income Quant Active UCITS ETF.

They seek to use a quantitative-driven approach with proprietary factors to form the basis of a stock selection process, leveraging HSBC AM’s quantitative equity capabilities.

The overall investment approach aims to target specific drivers of equity returns and select stocks based on their ‘style’ characteristics, including stocks which show the greatest association with value, quality, industry momentum, low risk, and size.

The core range (HSBC PLUS USA Equity Quant Active UCITS ETF, HSBC PLUS World Equity Quant Active UCITS ETF, and HSBC PLUS Emerging Markets Equity Quant Active UCITS ETF) looks to maximise exposure to the highest ranked stocks according to their factor characteristics while minimised the overall risk of the portfolio.

Meanwhile, the income range (HSBC PLUS World Equity Income Quant Active UCITS ETF and HSBC PLUS Emerging Markets Equity Income Quant Active UCITS ETF) aims to identify equity securities that provide additional income compared to a market-cap index and have attractive income and quality characteristics, while preserving the capital growth.

The funds will be registered and available to retail, wholesale and institutional investors in Austria, Germany, Spain, France, Italy, Luxembourg, Sweden, and the UK.

“The active ETF market is enjoying strong growth, and we are pleased to introduce our suite of funds in this space as part of our efforts to bring innovative and relevant investment tools to investors,” commented HSBC AM global head of ETF and indexing sales, Olga de Tapia.

“Our HSBC PLUS Active ETF range combines quantitative active management with the efficiency of an ETF structure and aims to provide investors with additional alpha beyond core passive exposures in a cost-efficient way and ensuring resilience across diverse market cycles and economic regimes.

“As investors seek more sophisticated strategies and more efficient ways to capture risk premia, as well as enhance equity returns in today’s complex investment environment, we believe factor strategies can be used to complement existing investments and help with diversification by sitting in a space between traditional active and passive investments.”

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